If a Proposal's Profitability Index Is Greater Than One Then

question 80

True/False

If a proposal's profitability index is greater than one then the net present value is positive.

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Definitions:

Instructional Modules

Structured units designed to provide education on a particular topic, often part of a larger course or curriculum.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Average Fixed Cost

Unchanging production costs (which do not fluctuate with production levels) divided by the output quantity.

Instructional Modules

Structured units of educational material or courses designed to teach a specific subject or skill.